The following message with the Governor's objection to S. Sub. for HB 2860, An act
concerning the open meetings law; amending K.S.A. 75-4317a and repealing the existing
section,was received and read.

Message to the House of Representatives of the State of Kansas:

Pursuant to Article 2, Section 14 of the Constitution of the State of Kansas, I am vetoing S. Sub. for HB 2860.

The Senate Substitute for House Bill 2860 was passed by the Legislature to reverse an
interpretation by the Attorney General related to the Kansas Open Meetings Act. The Act
already addresses situations in which a series of meetings occur regarding a single business
matter. A series of meetings must be open to the public in situations where: (1) each indi-
vidual meeting involves less than the number of people required for the organization to
conduct business; and (2) the collective total of participants in a series of meetings is equal
to or greater than the number of people required for the organization to conduct business.

In matters of public business, the public has a right to be present during the decision-
making process. Therefore, I am vetoing Senate Substitute for House Bill 2860.

I understand the confusion resulting from the recent opinion. I will work with the Attor-
ney General to achieve clarification on the impart of the opinion. If legislation is necessary
next session to further clarify the intent of the Kansas Open Meetings Act, I would encourage
that it be accomplished in a thoughtful process which included input from all affected
parties.

The following message with the Governor's objection to S. Sub. for HB 2895, An act
making and concerning appropriations for the fiscal years ending June 30, 1998, and June
30, 1999; authorizing certain transfers and fees, imposing certain restrictions and limitations
and directing or authorizing certain receipts, disbursements, capital improvements and acts
incidental to the foregoing; repealing section 11 of 1998 House Substitute for Substitute for
Senate Bill No. 424, was received and read.

Message to the House of Representatives of the State of Kansas:

Pursuant to Article 2 Section 14 of the Constitution of the State of Kansas, I hereby return S. Sub. for HB 2895 with my signature approving the bill, except for the items enumerated
below.

Agriculture--Technical Corrections

Sections 17(j) and 17(k) have been line-item vetoed in their entirety.

The expenditure limitations on the Department's Fertilizer Fee Fund and Pesticide Use
Fee Fund reference incorrect amounts. Because I agree that the Department of Agriculture
should spend $50,000 to evaluate the safety of containment facilities, I am vetoing language
that would prevent this expenditure. I also veto the language that would incorrectly raise
the expenditure limitation on the Pesticide Use Fee fund from $416,010 to $475,472. This
action will result in a net decrease of $8,945 in FY 1998 expenditures.

All Agencies--Salary Plan Duplication

Sec. 49 has been line-item vetoed in its entirety.

This section authorizes salary increases in accordance with the proposal I submitted to
the Legislature for state employee pay. However, it duplicates the same salary authority
approved in SB 501, which was also passed by the Legislature. SB 501, which I have
signed into law, is the preferred means for implementing the salary increases because it
allows the salaries of elected officials to be updated in substantive law to include salary levels
effective for FY 1999. I veto this section as a technical action to avoid duplication and the
potential for confusion.

Bill Graves

Governor

Dated: May 21, 1998.

CONSIDERATION OF VETOED BILLS

The Governor's objection to S. Sub. for HB 2860 having been read (see this journal),
the time arrived for reconsideration of S. Sub. for HB 2860, An act concerning the open
meetings law; amending K.S.A. 75-4317a and repealing the existing section.

There was no motion to reconsider. The Chair ruled the bill had been reconsidered and
the veto sustained.

CONSIDERATION OF VETOED BILLS

The Governor's objection to the line items in sections 17(j), 17(k) and 49 of S. Sub. for HB 2895 having been read (see this journal), the time arrived for reconsideration of S. Sub. for HB 2895, An act making and concerning appropriations for the fiscal years ending
June 30, 1998, and June 30, 1999; authorizing certain transfers and fees, imposing certain
restrictions and limitations and directing or authorizing certain receipts, disbursements,
capital improvements and acts incidental to the foregoing; repealing section 11 of 1998
House Substitute for Substitute for Senate Bill No. 424.

There was no motion to reconsider. The Chair ruled the line items had been reconsidered
and the veto sustained.

S. Sub. for HB 2895 reported correctly enrolled, properly signed and presented to the
governor on May 11, 1998.

REPORT ON ENROLLED RESOLUTIONS

HR 6021, 6022, 6023, 6024 reported correctly enrolled and properly signed on May
8, 1998. The hour for final adjournment having arrived, Speaker Shallenburger said, ``By
virtue of the authority vested in me, as Speaker of the House of Representatives of the 1998
session, I do now declare the House adjourned sine die.''

MESSAGE FROM THE SENATE

Announcing the veto message from the Governor on SB 495, An act making and con-
cerning appropriations for the fiscal years ending June 30, 1998, and June 30, 1999; au-
thorizing certain transfers, capital improvement projects and fees, imposing certain restric-
tions and limitations and directing or authorizing certain receipts, disbursements and acts
incidental to the foregoing; amending K.S.A. 79-2964, 79-3425i and 79-34,147 and repealing
the existing sections; also repealing K.S.A. 75-3730a and 75-3730b and section 23 of chapter
123 of the 1997 Session Laws of Kansas, which was received on April 27, 1998, and was
read before the Senate on April 29, 1998.

Message to the Senate of the State of Kansas:

Pursuant to Article 2, Section 14 of the Constitution of the State of Kansas, I hereby
return SB 495 with my signature approving the bill, except for the items enumerated below.

KPERS COLA

Section 99(c) has been line-item vetoed in its entirety.

This line-item would approve $28,342,761 from the State General Fund to pay cash for
a 3.0 percent cost-of-living increase for KPERS retirees who retired before July 1, 1993.
However, SB 11, which contains the enabling language needed to implement the retiree
COLA, is still in Conference Committee. As a consequence, the lack of any enabling re-
tirement legislation makes this State General Fund deposit into the KPERS Fund
premature.

This veto should not be read by anyone as a diminishment of my commitment to a base
increase for the KPERS retirees. I strongly urge the Legislature to review again my proposal
for providing a 3.0 percent cost-of-living increase for all retirees to be funded by increasing
the employer contribution rates beginning in FY 2000. It must be noted that the KPERS
actuaries have determined that my proposal would not adversely affect the unfunded lia-
bility, which is projected to reach equilibrium in FY 2002. As a result, my recommendation
remains the most cost effective method for providing a COLA for retirees.

Administration--Public Broadcasting Equipment Grants (EDIF)

That portion of Section 104(b) that reads as follows has been line-item vetoed:

``Public broadcasting equipment grants EDIF fund

$200,000

Provided, That all expenditures from the public broadcasting equipment grants EDIF fund
shall be made to provide matching funds for federal capital equipment grants awarded to
eligible public broadcasting stations: Provided further, That expenditures from this fund
may be made to provide matching funds for capital equipment projects funded from any
nonstate source in the event federal capital equipment grants are not awarded: And providedfurther, That in the event the federal facility programs cease to exist or fail to conduct grant
solicitations, expenditures may be made from this fund to provide matching funds for capital
equipment projects funded from any nonstate source without first applying for federal cap-
ital equipment grants.''

Section 104(i) has been line-item vetoed in its entirety.

My original recommendation for public broadcasting equipment acquisitions included
$100,000 from the State General Fund for FY 1999. The Legislature added $150,000 from
the State General Fund and $200,000 from the EDIF. Although I still believe my original
recommendation was adequate for equipment acquisition, the total State General Fund
appropriation of $250,000 is certainly more than generous for normal grants. If a targeted
use of $150,000 for the microwave interconnection for public television is recommended, I
would support that.

SRS--Correct Children's Health Care Duplication

That portion of Section 120(a) that reads as follows has been line-item vetoed:

``Children's health insurance

$12,000,000

Provided, That any unencumbered balance in the children's health insurance account in
excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.''

This section would provide a State General Fund appropriation to match the federal funds
that have been available to the State of Kansas for the financing of a health care program
for children. I have signed House Substitute for SB 424, which is the authorization for that
program. Included in that bill is a $12.0 million State General Fund revenue transfer in FY
1999 to the Kansas Insurance Coverage for Children Fund to provide the match for the
available federal funds. Because the match for the health care program for children is already
authorized by House Substitute for SB 424, this section is duplicative and therefore vetoed.

Regents--National Geographic (EDIF)

That portion of Section 139(b) that reads as follows has been line-item vetoed:

``Kansas state geography education endowment program fund

No limit

Provided, That all moneys received from the national geographic society foundation to create
a Kansas state geography education endowment program shall be deposited in the state
treasury and credited to the Kansas state geography education endowment fund.

EDIF--national geographic societyeducation foundation endowment fund

$250,000

Provided, That all expenditures from the EDIF--national geographic society education
foundation endowment fund shall be matched on a $1 for $1 basis by expenditures from
the Kansas state geography education endowment program fund so that expenditures for
the Kansas state geography education endowment program are equally supported by funds
received from the national geographic society foundation and from the Kansas economic
development endowment account of the state economic development initiatives fund: Pro-vided further, That the state board of regents shall implement and administer the Kansas
state geography education endowment program.''

Section 139(e) has been line-item vetoed in its entirety.

The vetoes above relate to the FY 1999 appropriation made by the Legislature to the
Board of Regents to create a state geography education endowment program. I disagree
with the transfer of $250,000 from the EDIF to establish this endowment fund and believe
there are higher priorities for education funding, especially for at-risk and early childhood
programs. Additionally, if additional funding is to be recommended, I believe it should be
targeted to existing programs, such as environmental education and agriculture in the class-
room, which were reduced by the Legislature.

All State Agencies

Section 163 has been line-item vetoed in its entirety.

Section 163 requires state agencies, by October 31, 1998, to file variance reports on their
budget to a number of legislative officers and committees. Specifically, the reports must
show variances between budgeted and actual expenditures for FY 1998 for federal, other
special revenue, and non-governmental funds. Similar reports would also have to be sub-
mitted by the beginning of the 1999 Legislative Session, showing variances in these same
funding sources for FY 1999 between the approved budget and the revised estimate of
expenditures year-to-date. I veto this section because it imposes another unnecessary ad-
ministrative burden on state agencies to provide information that is already attainable
through the normal budget process or available, upon request, from state agencies.

Attorney General--Termination of Contract for Legal Services

Section 162 has been line-item vetoed in its entirety.

Section 162 was intended to compel the Attorney General to renegotiate the contingency
contract entered into with various law firms to secure the vigorous prosecution of the state's
claims for damages and injunctive relief in lawsuits against the major manufacturers of
cigarettes. The concern of the Legislature is the amount of possible attorneys fee that might
be awarded by the courts under the contract. The language of Section 162 calls for the
Attorney General to fire all of the private attorneys currently representing the state in its
current lawsuits against the cigarette manufacturers.

The implementation of Section 162 could seriously damage the state's ability to proceed
with the lawsuits. Some 3,000 children a day start to smoke cigarettes. Hundreds of millions
of dollars may be recovered from these suits. These lawsuits may be the only effective way
to reduce underage smoking and recover the money spent in treating the disease caused by
smoking. The Attorney General and the leadership of the Appropriations and Ways and
Means Committees are currently seeking to reach an agreement on the terms of a rene-
gotiated contract. I strongly support those efforts and urge agreement on reasonable and
fair fees. Under these circumstances, I veto Section 162.

Bill Graves

Governor

Dated: April 27, 1998

There being no action onSB 495, the line item vetoes were sustained.

MESSAGE FROM THE SENATE

The Senate announces the following bills and concurrent resolutions are hereby trans-
mitted to the House of Representatives with final disposition: